Quest is currently investigating the resources in the deal's due diligence phase. During the process, Mountain Ridge said it will provide the company with all information possible, including equipment appraisals, and once the report is complete Quest will have one week to employ its decision.
A highwall miner and rights to mine an estimated metallurgical coal reserve of 6 million tons are included in the sale of the property.
“Mountain Ridge Mining represents a new opportunity for Quest to expand our portfolio of proven coal reserves and also acquire critical mining equipment," Quest president Eugene Chiaramonte Jr said, adding that it will provide updates on the report's findings.
Last week, the company announced a global opportunity with a New Delhi, India group that made a "contingent offer" for up to 150,000 tons per month from Quest's output at a cost of $US114 per ton.
The coal will come from its Lower Cedar Grove operation, operated by its Gwenco division – a mine which has more than 3.7Mt of metallurgical reserves.
“Of course, our discussions are preliminary," Chiaramonte said.
“They will have to conduct independent sample studies to confirm that the metallurgical qualities within our coal meet their standards. However, the opportunity is real."
